I (Meaning and importance of Exports) Unit Structure

9. Better utilization of resources
The economic integration would help to make better 
utilization of resources. Due to the growth of the region, there would 
be optimum use of physical resources, human resources and 
financial resources. 
The optimum use of resources would in turn lead to higher 
efficiency and productivity of the various firms in the region. 
10. Consumer welfare
A trading bloc facilitates consumer welfare in the region. Due 
to economic growth, the employment opportunities increase, which 
in turn increase purchasing power, and the people can enjoy higher 
standard of living. Also, due to trading bloc, the consumers may 
have to pay lower prices, and at the same time enjoy higher quality 
products. 
4.9.2 NEGATIVE IMPLICATIONS 
The trading blocs can negatively affect the non-
members countries. This is due to the following: 
1. Common external barriers 

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The member countries of the trading bloc may impose 
common external barriers on non-members. The common external 
barriers may be in the form of tariff and non-tariff barriers. Due to 
such external barriers, the non-members stand at a disadvantage 
and as such their trade with trading member countries gets affected 
to a certain extent. 
2. Collective bargaining by member nations 
The members of the trading bloc collectively bargain with 
non-members in respect of trade related matters. Due to their 
collective bargaining power, the non-member nations stand at a 
disadvantage. 
4.10 GLOBAL SYSTEM OF TRADE PREFERENCES 
 
(GSTP) 
The agreement on GSTP among developing countries was 
signed on 13
th
April, 1988 at Belgrade. It was signed by 48 
developing countries including India those were the members of 
group 77.